The development of inter-urban railway transportation, especially in Greater Jakarta and its surroundings, has a significant impact on regional development. The government is developing the railway network, allowing for expansion of development in the area around the railway network, leading to urban sprawl and other negative externalities. A comprehensive study is needed to anticipate and provide policy instruments to control the negative impacts of railway expansion. This study aimed to address such an issue by developing a dynamic model of interurban railway transportation and its impact on the development of a region using a system dynamic modeling, by developing land-use sub-model, population sub-model, housing submodel, and economic sub-model. The study was conducted in the Sukaraja District of Bogor Regency, part of the Greater Jakarta railway network transportation development. The study shows that within the next 50 years, the study area will be impacted significantly by the railway networks, leading to declining agricultural land availability, increasing settlement areas, and expansions of economic infrastructures. These will positively and negatively impact the regions and their neighborhood regions, such as Bogor and Jakarta.